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Promoting energy efficiency in Ukraine's public buildings

The EBRD is helping to introduce energy service schemes and energy performance contracting programmes in several cities for public buildings.

Buildings account for a very large share of energy consumption and offer the broadest range of negative cost energy efficiency measures.

To improve the energy performance of public buildings in Ukraine the EBRD has launched a technical assistance project focusing on how to identify and develop mechanisms for private sector financing of energy efficiency improvements in public buildings such as schools and hospitals in Ukraine.

Absorbing energy efficiency investments

The project, funded by the Czech Republic through a grant of over €200,000, is helping to prepare and develop an ESCO (energy services companies) scheme and to introduce energy performance contracting (EPC) programmes in Ukraine. EPCs are contractual arrangements between the beneficiary and ESCOs for energy saving investments that can be repaid through the savings on future energy bills.

Building an adequate legal and commercial framework

The project assessed the detailed legal and commercial framework for EPC services in Ukraine and conducted an analysis of the market for ESCO services, including the technical potential, capabilities of existing engineering firms, and analysis of financing mechanisms and schemes for EPCs. The project helped identifying the regulatory reforms needed to enable fully flexible use of EPCs in Ukraine and maximise the level of private sector risk participation in line with international practice. The implementation of the scheme was tested in three Ukrainian cities: Dnipropetrovsk, Odessa and Zaparozhia.

Through the implementation of this scheme Ukraine public buildings could absorb energy efficiency investments, leading to significant energy savings and a reduction of Ukraine’s natural gas imports.